Nichola's SME tax W-update 1 February 2019

Hello

The chancellor has announced date of his Spring Statement. This is an not an additional budget (Budget 2019 is scheduled for the Autumn), we might though expect further announcements on key measures such as Making VAT digital and perhaps hear more on certain outstanding consultations, such as employment status.

This time we have been reviewing the different attitudes to the contractor loan/disguised remuneration loan charge. I think the first time that I was properly introduced to Employee Benefit Trusts 'EBT's was when a 'tax boutique' offering tax planning expertise to smaller accounting firms, gave a presentation to the firm for whom I was working. This was back in about 2000 and the Dextra Accessories appeal revealed that some quite large companies were using EBTs as a method of 'rewarding' employees. Back then, aside from the corporation tax advantage, I struggled to see the benefit of a properly accounted for employee loan as it simply deferred your tax bill unless you knew you were going to move permanently abroad or die. In following years the rules changed on corporation tax deduction and EBT planning evolved into multi-million pound industry together with a side industry of 'loan cleansing'. It was helpful having Crown Dependencies. HMRC this week admitted that over half of all the now renamed 'disguised remuneration' loans were not disclosed under DOTAS. It's far too late now for recriminations, the stable door was blow off its hinges and the loan charge is all set to apply from April 2019. 

So too is Making VAT Digital, more on that in future weeks.

I hope January went well for your firm and not too many of you are at your desks today, although the snow might be the reason for that.

If you have any tax queries please do try out our Virtual Tax Partner support portal at www.VtaxP.co.uk.

Enjoy the guides and updates and the news is below. 

Back soon

Nichola Ross Martin FCA CTA (Fellow) Tax Director

www.rossmartin.co.uk

Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers

Quick news (freeview)

The Loan charge: Another point of view
HMRC recently issued a new factsheet about the Disguised Remuneration Loan Charge. Tax barrister Keith Gordon has published a ‘line by line takedown’ of the factsheet. We thought it might be interesting to consider a different point of view.

2019 Spring Statement date
The Chancellor of the Exchequer has announced that the next Spring statement, where the government will respond to the forecast from the Office for Budget Responsibility (OBR), will be held on Wednesday 13 March 2019.

Spotlight 46: Rewarding employees and contractors using contrived loan arrangements
HMRC has published a new tax Spotlight: ‘Rewarding employees and contractors using contrived loan arrangements.’ It highlights two recent opinions given by the GAAR panel on arrangements involving employee rewards using loans.

Making Tax Digital (freeview)

Making Tax Digital: What's on January 2019

With the mandation of MTD for VAT less than 3 months away we look at recent developments and updates from HMRC ahead of the 1 April 2019 deadline.

Editor's Choice (subscribers) 

Tax Planning for the 2018/19 year-end
NEW: the end of another tax year approaches, our top tips and planning ideas for individuals.

Self Assessment late filing and penalties
UPDATE: what penalties apply if you can't file or pay on time.

Tax Guides and Updates (subscribers) 

Pop-ups: What expenses can I claim?
NEW: The next in our series of A-Z guides, this guide outlines what expenses unincorporated pop-up café, restaurant and coffee shop owners can claim for tax purposes.

A-Z guides: different trades & professions
Detailing variations on the rules for different business. What expenses can I claim? VAT issues, topical cases.

Pension contributions: personal or company?
UPDATE: guide for company owners.

Tax Planning for the 2018/19 year-end
NEW: This is our year-end and new tax year tax checklist and toolkit for individual Private Clients, it can be used in conjunction with our checklists for Directors, Employers and Self-employed individuals.

New: TAAR Tool Beta testers wanted
Need to check that you have correctly completed your tax return? Apply to beta test a new tool.

Case Update (freeview)

Conveyancing: scope of legal privilege
In DAC Beachcroft LLP v HMRC [2018] TC 6704, the first tier tribunal (FTT) found that legal advice privilege (LAP) applied to conveyancing documents sought by HMRC during enquiries. 

Partner's inabilty to quantify losses
In Gavin Faulkner v HMRC [2018] TC 6500 the first tier tribunal (FTT) agreed that the inability of a member of a limited liability partnership to obtain figures for a loss claim can be a reasonable excuse for late filing.

VAT (freeview)

No refund of VAT after HMRC changed the rules
In HMRC v KE Entertainments Ltd [2018] CSIH 78 the Court of Session in Scotland found a bingo operator was not entitled to a refund of VAT when HMRC changed the basis for assessing VAT.

VAT (subscribers) 

Penalties (VAT)
UPDATE: what new penalties will actually be applied under MVD? What are the current rules? A handy refresher.

Reclaims and unjust enrichment
UPDATE: for recent case law about what is (and is not) unjust enrichment in VAT repayment claim cases.

CPD & Webinars

Private Client Update - January 2019

NEW: A webinar covering private client news, legislative changes and interesting cases from the past few months.

Budget 2018: subscriber guide & CPD
UPDATE: key announcements at a glance

See CPD for Lunch

Missed last time's Web-update?

Nichola's SME tax W-update 25 January 2019

Features:

Come and join our Cloud

Subscribe (and UNLOCK the whole site) A single user annual subscription is £365 (+ VAT). 

What do you get?